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Replies to: Does FAFSA take into account mortgage and loan debts?

It does not take into account any payments you have to make on loans or mortgages. it does take into account any reduction in value of a reportable asset because of a loan or debt. For instance real estate (other than the primary home which is not a reportable asset) would be the value of the property less the mortgage against it. A stock account would be the net value of the account - value of the stock less any margin account loans against it. The debt has to be direct against a reportable asset. Other debts, such as credit card debt or car loans, are not taken into account by FAFSA.

Swimcats summed it up well. If you are talking about the mortgage on your primary residence or consumer debt (credit cards, car payments, department store credit cards, etc)...the answer is no...these are not considered on the FAFSA at all.

I didn't ask this question but I benefited from the answer! My (unmarried) ex makes a nice living but has no mortgage debt...my husband and I make twice what he does but we have two homes and two mortgages...so I guess it does make more sense for HIM to file the FAFSA.

Skwidjymom - the fafsa is submitted by the student and contains the information of the custodial parent (and spouse if applicable). If your ex is not the custodial parent, his information is not relevant on the fafsa. You don't get to pick just because one works better for you than the other

He can't file the FAFSA UNLESS he is the custodial parent. That means your child needs to live with him more than 1/2 the time and more than 1/2 of her support would need to come from him. She would need to graduate from the high school where her father (and she too) resides.

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